Thread: U.S. governors seek $1 trillion federal assistance

U.S. governors seek $1 trillion federal assistance


Fri Jan 2, 2009 5:48pm EST

By Jon Hurdle


PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin -- all Democrats -- said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.

Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

"It's clear that the federal government needs to step in and jump-start the economy," said Gov. Deval Patrick of Massachusetts.

The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states.

The remainder would be used to fund middle-class tax cuts, stimulate the embattled housing market, and stem the tide of home foreclosures through a loan-modification program.

Gov. Jon Corzine of New Jersey said he hoped some of the $700 billion authorized by Congress in the Troubled Asset Relief Program would be available to help the housing market.

The governors said during a conference call with reporters that the plan had been discussed with Congressional leaders and the incoming administration, which had indicated its willingness to help.

"The Obama team has been very receptive in listening to us," said Gov. Jim Doyle of Wisconsin. He said "quite a number" of other governors back the initiative.

The Republican Governors Association, however, said the level of federal aid being sought would create a burden for the future.

"The proposal by the Democratic governors goes beyond things like 'shovel-ready' infrastructure projects and is essentially a bailout of these states' general funds," Nick Ayers, executive director of the Republican Governors Association, said in a statement. "Now is the time to focus on finding cost-effective ways to provide essential services without burdening future generations with ever greater debt."

Doyle of Wisconsin said the plan would allow states to maintain essential services at about the current level until 2010, when the national economy is expected to begin a recovery.

The proposal comes amid expectations that the Obama administration, which takes office on January 20, will provide hundreds of billions of dollars in economic stimulus to boost the shrinking U.S. economy and halt the loss of jobs.

Paterson of New York said his state's budget deficit has surged to $15.4 billion currently from $5 billion in April 2008, despite a 3.2 percent cut in the education budget.

Corzine said the money called for represents about 3 percent to 3.5 percent of the economy, equivalent to the amount that the economy is expected to contract by over the next two quarters.

In light of the $700 billion provided to bail out the financial industry, "It's not shockingly large," he said.

(Editing by Leslie Adler)


www.reuters.com

HELL NO! NOT UNTIL THEY CAN PROVE THAT THIS MONEY DOES NOT SUPPORT ILLEGAL ALIENS WHO ARE NOT SUPPOSED TO BE HERE
PERIOD!

No thank you ... once again... any funny (Monopoly) money printed is the responcibility of the Federal reserve.... any loans given to the state are a personal loan to be paid back by the individual asking for it

I have no confidance in the Federal Reserve, the federal government nor the abilities of the states to spend money wisely

they can take they're little PONZI Scheme and shove it where the sun dont shine

Originally Posted by Rockfish

HELL NO! NOT UNTIL THEY CAN PROVE THAT THIS MONEY DOES NOT SUPPORT ILLEGAL ALIENS WHO ARE NOT SUPPOSED TO BE HERE
PERIOD!

They can't prove that because that's precisely where the money will be going!!

And if that's not where it had been going in the first place, we'd not be in such a big quagmire now.

Originally Posted by AirborneSapper7

No thank you ... once again... any funny (Monopoly) money printed is the responcibility of the Federal reserve.... any loans given to the state are a personal loan to be paid back by the individual asking for it

I have no confidance in the Federal Reserve, the federal government nor the abilities of the states to spend money wisely

they can take they're little PONZI Scheme and shove it where the sun dont shine

Well don't hold it in AB.....say what's on your mind before you explode

Originally Posted by azwreath

Originally Posted by AirborneSapper7

No thank you ... once again... any funny (Monopoly) money printed is the responcibility of the Federal reserve.... any loans given to the state are a personal loan to be paid back by the individual asking for it

I have no confidance in the Federal Reserve, the federal government nor the abilities of the states to spend money wisely

they can take they're little PONZI Scheme and shove it where the sun dont shine

Well don't hold it in AB.....say what's on your mind before you explode

Airborne knows a lot about money. Airborne does a lot of research on it.

I think we are all just as mad as Airborne. It's really going to hit the fan soon in th US. We are fed up with the government's same poop, different pile!

the corruption of the Federal and State governments is now absolute .. no more.. just turn your back and walk away

Any new taxes to pay for any new corrupt scheme to pay off more corrupt people is just that. A very corrupt idea from the get go... for some reason people thinks this crap is free... nothing is free, you will pay for it till the end of days ... your kids will pay for it, as a matter of fact you great, great grand childrens, grand children will be paying for it

somebody needs to do a reality check and it ain't me...

now.. you tell me where these Gooney Goo Goo Politicians are getting they're confidance from .... it aint me... I wouldnt let them balance my coin jar without a video camera ... and still they would still find a way to do a shell game on me

I have to balance my check book .. you Goofy politicians get your grubby hands out of my pocket

Originally Posted by AirborneSapper7

the corruption of the Federal and State governments is now absolute .. no more.. just turn your back and walk away

Any new taxes to pay for any new corrupt scheme to pay off more corrupt people is just that. A very corrupt idea from the get go... for some reason people thinks this crap is free... nothing is free, you will pay for it till the end of days ... your kids will pay for it, as a matter of fact you great, great grand childrens, grand children will be paying for it

somebody needs to do a reality check and it ain't me...

now.. you tell me where these Gooney Goo Goo Politicians are getting they're confidance from .... it aint me... I wouldnt let them balance my coin jar without a video camera ... and still they would still find a way to do a shell game on me

I have to balance my check book .. you Goofy politicians get your grubby hands out of my pocket

I totally agree.

what you see before you is 50 crack heads (Govenors) that are addicted to crack (money) begging for more Crack from the distributor of Crack (The Congress) that has deligated the dealing the Crack to the President and Henry Paulson

the biggest theft in the History of the world has been and is still going on right in front of your face... they no longer hide it .. they encourage it

Key - Substitute Money for the word Crack if you want.. but both are still addictive to the nut cases stated above

Crack..a great analogy, Sapper!